23% of Small Business Owners Forgo Pay For At Least A Year

A new nationwide survey by Citibank reports that 23% of small business owners went without pay for at least one year to keep their small business running – with the majority of respondants (54%) reported going without at least one paycheck.

“Business owners are wearing more hats, working more hours and taking less profit” to keep their businesses going, said Maria Veltre, Citi's managing director of small business. “They don’t sit idle, they’re asking, ‘What do I need to do to make my business grow?’ There is a level of sacrifice small business owners take for their businesses.”

Citibank also reports that of the 750 small businesses surveyed:

  • 33% say their business is better than it was a year ago, up from 26% in January.
  • 33% expect their business will grow by more than 10 percent in 2012.
  • 78% have taken less profit
  • 70% have worked more hours than usual
  • 69% have used their own money to help the business survive
Tight credit for small business owners, reluctance to borrow, Obamacare, and expired tax cuts are also factors in small business owners going without pay. But according to Citibank's Veltre  “access to financing doesn’t come up in the top five most important issues among small businesses on our survey. We don’t see that they are saying, ‘We need cash.’ Instead, they are saying, ‘We need sales, and we need consumer confidence to be addressed.’”
Atlanta small business owners – have you ever sacrificed your own pay to keep your business running or to provide for your employees?  We'd like to hear from you.

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Category: Featured, Featured Post, Money & Finance

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